Overall, the average increase across all regions will be 5.3 percent. Starting January 1, the minimum wage will increase to VND4.18 million ($179.25) in region one, VND3.71 million ($159.09) in region 2, VND3.25 million ($139.38) in region 3, and VND2.92 million ($125.23) in region 4, according to a decree recently issued. The four different minimum wage regions are supposed to reflect the cost of living in each area. Region 1, including Hanoi and Ho Chi Minh City, has the highest minimum wage, while region 4, rural areas, has the lowest. Businesses use the minimum wage to calculate salaries for their workers by multiplying the base level by a coefficient assigned to each worker based on their skills and experience. Some representatives of businesses have said that the minimum wage increase will affect business results of companies, especially small and medium ones. According to a survey released by employment website Jobstreet.com late last year, salaries in Vietnam are rising faster … [Read more...] about Vietnam to up minimum wage by 5.3 pct in 2019

Monthly minimum wage will increase from July next year following the National Assembly’s resolution. — Photo laodong.vn Viet Nam News HÀ NỘI — Monthly minimum wage will increase from VNĐ1.39 million (US$60) to VNĐ1.49 million ($65) at the beginning of July next year, according to the National Assembly’s Resolution 70/2018/QH14. In the Resolution, the National Assembly (NA) also asked the Government to adjust pensions, social insurance allowances and monthly allowances according to regulations. Preferential allowances for people with meritorious service to the country through years of struggle for national liberation and independence will be increased based on the new minimum wage from July 1 next year. Under the resolution, from July 1 next year, regional minimum wage levels applicable to labourers working under contracts will be increased as follows: Region 1 – VNĐ4.18 million ($180), Region 2 – VNĐ3.71 … [Read more...] about Monthly minimum wage to rise in July

Tens of millions of salaried workers and employers in factories and industrial zones across the country are awaiting the wage recommendation from the National Wage Council. Intensive minimum wage debates may make people forget that the life of workers is also affected by many other things, those which can be done right away without debate - At the meeting held by the council to discuss the minimum wage hike for 2019, the Vietnam General Confederation of Labor (VGCL) proposed a hike of at least 8% for the minimum wage while the Vietnam Chamber of Commerce and Industry (VCCI) suggested keeping the status quo. Each side has its own reasons. According to a new report released by the VGCL, the current minimum wage can meet only 93% of the minimum living standard. Meanwhile, as per Resolution 27-NQ-TW issued recently, only two years remain for the wage hike so that by 2020 the region-based minimum wage must meet the minimum living standard. However, the resolution also states the … [Read more...] about Minimum wages and workers’ life

VCCI proposes end to minimum wage hikes from next year By Thuy Dung Workers are seen at a garment company. VCCI proposes no more wage hikes from next year as annual minimum wage rises place a heavy burden on enterprises – PHOTO: THANH HOA HANOI – The Vietnam Chamber of Commerce and Industry (VCCI), representing employers in the nation, has suggested keeping region-based minimum wages unchanged from next year as annual minimum wage hikes place a heavy burden on enterprises. At the first meeting on the minimum wages in 2019, held by the National Wage Council in Hanoi on July 9, VCCI Vice Chairman Hoang Quang Phong said the VCCI had consulted domestic and foreign enterprises about the minimum wage spike next year, and most of them had agreed on the proposal. The reason behind the proposal is that employers want to improve their payment capability and boost the training of workers to help them meet working requirements and raise labor productivity. Minimum wage hikes … [Read more...] about VCCI proposes end to minimum wage hikes from next year